Gold last line of defense
Gold has suffered a setback, and in the critical situation, if the price moves lower than current support level, it should continue bearish for the long term. $1,200 – $1,220 is the support area all trader need to watch, next movement either bounce or break is vital to determine next trend.
Today critical level to watch:
Support: $1,200, $1,190
Resistance: $1,220, $1,250, $1,260, $1,270
Silver hard time lower
Struggling bull in Silver threatens by previous week lower close. The price hovering between $16 and $17 which is the lower part of the $16 – $18.50 range. This week, the price might move lower and touch the $16, the bull can use this level to place long position.
Today critical level to watch:
Support: $16.50, $16.00, $15.80
Resistance: $16.75, $17.00, $17.20, $17.50, $18.50
Crude Oil megaphone to continue
Higher opening gap this week place crude oil price outside of the blue channel. The price of crude oil looks to continue moving upside and touch the upper part of the megaphone.
The talk about oil production cut progressing positively with recent confirmation that Russia will join the cut. However, oil analyst around the world predicts this oil production cut will fail to bring the price up. Several reasons:
- Oil reserve discoveries in the USA. A Recent Discovery in West Texas might be the largest discovery with estimated worth of 20 billion barrels of oil reserve.
- There are suffering countries such as Venezuela, Algeria, Ecuador. However, there are also Iraq and Iran who is reluctant to cut. History told the failure in oil production cut in the early 1980s, when Saudi Arabia led the cut, other countries pumped more to fill the gap which leads to sell-off when Saudi Arabia back pumping.
- Strong U.S dollar deters appreciation of oil price.
OPEC member will meet in Vienna on November, 30. They might reach a deal, but the question comes to the impact of the production cut.
Today critical level to watch:
Support: $46.00, $45.30, $44.70, $44.26, $43.90
Resistance: $46.20, $46.50, $47.00